The Department of Veterans Affairs (VA) is adding $450 million to the $1 billion ceiling of its popular health IT contract, known as the Veterans Health Administration’s (VHA) Integrated Healthcare Transformation (IHT) contract.


The VHA awarded the indefinite delivery, indefinite quantity (IDIQ) contract in April 2020, with the expectation that the next contract would be completed in 2028-2029. However, the VA said that the contract has almost hit its ceiling in less than three years.


“Due to high utilization by VHA programs responding to COVID-19, the presidential transition, and myriad legislation passed since IHT’s inception, the contract has nearly hit its original maximum contract value in fewer than three years,” the VA said in a special notice posted to 


“As a result, VA intends to take urgent action now and increase the current contract maximum value by $450M to allow task order competitions to continue until the next IDIQ is solicited and awarded,” it added.


The VA said that industry will now compete for the next IHT contract this year, instead of waiting until the 2028-2029 timeframe. Over the next few months, VA will begin industry outreach – including industry days, requests for information, and pre-solicitation conferences.


The agency said the next contract will include a maximum contract value that is higher than the original IHT contracts, “given the utilization and value-added under the original contracts but will retain the elements of team-based structure” led by service-disabled veteran-owned small businesses “and broad capabilities crossing 36 (or more) areas.”


The VA plans to brief industry at an upcoming event in Orlando, Florida in late May.

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Grace Dille
Grace Dille
Grace Dille is MeriTalk's Assistant Managing Editor covering the intersection of government and technology.